LipaLater

Lipa Later operates as a consumer finance platform, primarily offering buy-now-pay-later (BNPL) services to bridge the credit gap for consumers in Africa. The company was formally founded in 2018 by CEO Eric Muli, Michael Maina (COO), and Purity Maina. The idea originated in 2017 when Muli, a graduate of Babson College with a degree in Finance and Economics, initiated a pilot program to help his colleagues purchase mobile phones on installment plans. This experience highlighted a significant market need, as traditional credit options were largely unavailable to the general population.

The business model centers on partnering with a network of online and offline merchants to offer point-of-sale financing to consumers. Customers can purchase items such as electronics, furniture, and appliances and pay for them in monthly installments over a period of up to 12 months. Lipa Later earns revenue through commissions and fees from merchant transactions, which range from 5% to 15%, and interest paid by consumers on the credit provided, typically between 4% and 10% based on risk profiles. The platform uses a proprietary credit-scoring system to approve credit limits for customers quickly.

Over the years, Lipa Later expanded its operations across Kenya, Rwanda, Uganda, and Nigeria, serving hundreds of thousands of consumers and tens of thousands of merchants. Key milestones include securing seed funding from Founders Factory Africa in 2019, raising $12 million in a pre-Series A round in 2022, and a partnership with Mastercard in 2023 to enhance its payment infrastructure. The company also acquired the e-commerce platform Sky.Garden in late 2022. However, facing financial difficulties and unable to secure further funding, Lipa Later was placed under administration in March 2025. In mid-2025, Engage Capital, a venture capital firm, made an offer to acquire the company's assets.

Keywords: buy now pay later, consumer finance, point of sale financing, installment payments, African fintech, merchant partnerships, credit scoring, e-commerce financing, financial inclusion, retail credit, mobile payments, asset financing, digital lending, consumer credit, Eric Muli, Michael Maina, Nairobi, Kenya, Uganda, Rwanda, Nigeria